Failing Health Care Co-ops Will Cost Taxpayers

Consumer Operated and Oriented Plan Programs (COOPs) were really a political compromise between Members of Congress who wanted a public plan option and those who didn’t. Once the Affordable Care Act passed, COOPs had outlived their usefulness. However, they are now failing and will cost taxpayers plenty. Senior Fellow Devon Herrick testified before a congressional committee.

How Health Reform Affects Current and Future Retirees

This year Medicare will spend more than $530 billion. Beneficiaries will pay for about 20 percent of spending through premiums and income tax payments. Workers will pay the remaining 80 percent through payroll and income taxes. In return for transferring their income to retirees, workers expect to receive health care benefits when they retire or if they become disabled.